Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1887-09-09
THE NEW STATUS OF TIE B. d O.

The preliminary contract entered into by
the Baltimore and Ohio Railroad Company
an syndicate of English and American
capitalists interested in trunk line securities
has stimulated the imaginations of a host of
takers aud writers, whose sp ,culators, pJur.
ed forth in vast volume, tenl 10 obscure the
real facts of the transaction aud its proper
consequences Some OF the New York
journals, losing their heads, have repre-
sentei 1t rs Il catastrophe 10 the Baltimore
and Ohio; an absorption Of the Baltimore
and Ohio system by one OF its rivals; a
total cessation of its existence Us an indie.
pendent Baltimore corporation Tnis, of
course, is wide of the mark. The essence
OF the transaction, rs stated by parties there.
to, is Of different nature. Certain infuen-
tial capitalists, who, by reason of their in.
vestments in the stock aud bonds of trunk
lines centerins in New York, are interested
ia the establishment Of stable railway
situation characterized by uuiiorm methods
OF doing business and paying rates, have
agreed, on certain conditions, 10 alvance
$4,000. 900 To the b. Il o. to pay its float
ing debt, aud in effect to secure il, ON the
one hand, entrance into New York over
the Reading and Jersey Central r ,ads, and !,
on the other, 10 open a way 10 the South to
it on favorable terms la doing this they
effect several valuable incidental results.
Opposing interests are quieted, causes of
antagonism are removed, ami facilities for
business are greatly improved. The agree
ment, it would appear, will be most bene-
fetal one for the roal The company be-
lieyed when the Philadelphia extension was
begun that 1t had valid contracts with the
Reading that would give it admission to
New York. The influences that rendered
those contracts valueless are now pledged
10 the realization vi the cumpany's original
programme AT the same time the Rich
mond Terminal is IA be brought into close
traffic arrangements as regards Southern
business. These two benefits, taken in con-
neciion with the clearing oI the financial
sky, are OF very considerable importance
both 10 the company aud " the city Of Bal.
timore, which is deeply concerned in the
company's fortunes. But itcsnnot b. over
looked that the advantages mentioned are
obtained at some sacrifice Of the position of
isolation aud independence Of outside 10.
fluence which has characterized the Balt-
more and Ohio from its first organization
This is implied ia the conditions on which
the syndicate has agreed To put up its money,
which are AS follows: That the Baltimore
and Ohio shall agree not u construct or
threaten 10 construct 4 line between PhiIa.
delphia and New York that il shall enter
into contracts with the other trunk lines
Tor New York business, with the object Of
removing the present antagonism between
IL and them ~ regard a. that business and
finally, thai 10 secure the carrying on of the
operations OF the road with ability and in
conformity with the principle Of harmony
which 1t is desired TO enforce, the manage.
ment of the company shall be placed in
hands satisfactory 70 the syndicate These
conditions point u an era Of sustained rates
and improved profits for stockholders all
around, the whole east ana west Lransporta
ton system centering in New York being
combined TO that end, but they mark also
the close OF the career OF the b. and o. as q
free lance. Rate wars are 10 he no more
and the Baltimore and Ohio is u go--not
lntn ha ffas,i far Il
by that name In New York since the pas
sage OF the interstate commerce act-bul
into the agreement" 10 sustain rates which
1t has hitherto declined TO be bound by
There are inco1yeniences that affect the DO
sitisn Of freelaHee Ia the railroad commu
nifty. as the financial ostracism 70 which the
Baltimore and Ohio has been subjected fol
some years past amply demonstrates. bui
still il is an enjoyable position usually Il
those that eau maintain il. II is nevcrthe
less possible 10 overestimste the loss in
cure by the Baltimore and Ohio by being
brought within the agreement" It's posi-.
tien there is or ought TO be the same as tina,
OF the New York Central, or Erie, or Penn
sylvania, which are not necessarily disgraced
Nv their submission to the common fate. II
is said. indeed, ny some that the Baltimore
and Ohio has been brought into the fold by
ahe Pennsylvania, and is 70 he subjected To
it there. This. however, is not view sup.
ported by any Known facts. Those In a
position "a know deoy absolutely that the
new arrangement brings tbe H. a. o. under
tl'e c'1irol q the Pennsylvania. spd in
sniISs1 - Their denial point y tbe fsct that